Austria's OMV's Q2 profits fall on lower margins

13 August 2013 11:32 Source:ICIS News

LONDON (ICIS)--The second-quarter clean operating profit for OMV’s petrochemical division fell to €47m ($62.7m) from €66m in the same period of last year, driven by lower ethylene and propylene margins, the Austrian group said on Tuesday.

However, the company’s petrochemical business did benefit from lower naphtha feedstock costs, OMV added. Clean profit excludes special items and inventory holding gains and losses.

Petrochemical sales volumes in the second quarter stood at 550,000 tonnes, compared to 540,000 tonnes in the same quarter of last year and 570,000 tonnes in the first quarter of 2013, the company said.

The second-quarter WECP ethylene/propylene net margin was €382/tonne, against €436/tonne a year ago and €363/tonne in the first quarter of this year, it said.

“In the petrochemical business, margins are expected to remain on average at the 2012 level,” OMV added in an outlook for the rest of 2013.

In other reporting on its petrochemical earnings during the second quarter of this year, OMV said the contribution from Austria-based Borealis – in which OMV is a 36% stakeholder – declined year on year by €10m to €30m as a result of subdued market conditions for the European polyolefins business and a slightly lower contribution from Borouge, the petrochemical joint venture between Borealis and and the Abu Dhabi state oil company, ADNOC.

Overall, OMV, also an oil and gas producer, achieved a second-quarter net profit of €343m, 5% less than the €360m it recorded in the same quarter of 2012, with lower gas sales volumes hitting profitability.

Sales revenues rose 6% year on year to €10.6bn.

($1 = €0.75)

By Will Conroy